GM Centre deficit to remain for now, council told

Manager rejects more ticket surcharges

General Motors Centre

OSHAWA -- There's little chance management at Oshawa's GM Centre will be picking up the tab for losses now charged to the City, councillors attending a budget meeting heard Monday.

General manager Vince Vella also balked at the notion of further ticket surcharges aimed at chipping away at the GM Centre's deficit, claiming they may do more harm than good.

But Mr. Vella did tell council he's optimistic the downtown venue will be in a break-even position within a couple of years, if costs can be managed and revenues can be increased.

"We're looking at 2016 for a break-even position," Mr. Vella told councillors gathered to hear submissions from its external agencies in preparation for the 2013 budget.

Mr. Vella was making a pitch for assistance, with the centre's projected deficit for 2013 expected to be $431,500. The City will also make $3.5 million in debenture payments on the centre this year.

During Monday's discussion, Councillor John Neal asked if the management company, Global Spectrum, might soon find itself in a position to cover deficits, as has been suggested for a new arena planned for Markham.

Not likely, said Mr. Vella. He said the Markham proposal is tentative at best -- such an arrangement would be contingent on securing an NHL franchise for the Markham facility -- and that model isn't feasible for Oshawa.

"The situation in Markham is a unique situation," he said. "Obviously an NHL franchise brings a lot to the table.

"I don't think that situation exists in Oshawa."

Mr. Vella was also cool to the suggestion of tacking on a deficit reduction fee of $1 or more to event ticket prices. GM Centre patrons already have a $1.75 surcharge imposed on their ducats to assist with a capital repair fund, he said.

"They're already getting dinged," he said outside the council chamber. "If you start tacking on more fees, that makes it cost-prohibitive."

"A $1 surcharge on your ticket price back to the taxpayer, I think, would be a reasonable cost," he said. "We're not pricing you out of the market."

Mr. Vella told councillors the venue's annual deficit is declining -- the 2013 projection is almost $23,000 less than 2012's -- and that he's hopeful enhanced revenues will eventually eliminate the shortfall.